The best thing you can do when planning to travel anywhere is to do your homework. Take the time to compare prices, research deals, weigh your options, and map your plans out in advance. If you fly by the seat of your pants, you’ll end up overspending. Here’s what I do to save money on travel.
Book in advance
No matter where you’re going, booking transportation, accommodations, and flights in advance can help you get the best rates. As inventory decreases, prices climb. Note: the exception to this is that sometimes you can find last-minute deals as airlines and hotels try to fill open spots.
Keep in mind that seasonality makes a difference. On average, the best time to book domestic flights is two and three months in advance, and fares to Mexico and the Caribbean are generally lowest around two months. However, if you’re heading to Europe, you can book as far out as six months in advance. Use Google Flights to receive price change notifications for flights you have your eye on.
I also like travel aggregators, like Expedia and Orbitz, for conducting research and booking travel. Both have loyalty programs that allow you to earn points for future trips, and with a coupon site, you can often find cash-back offers in the 4-6.5 percent range.
Timing is everything
Many travelers book flights and check into hotels on Thursdays or Fridays. Instead, plan to travel earlier in the week when fewer people are on the move. Another option is to try staying on a Sunday. Rates can be lower on Sundays because most guests check out that day.
Also, if you travel during the off-season, flights, accommodations, and rental cars will be less expensive, the crowds will be thinner, and lines will be shorter. Avoid holidays like Thanksgiving and Christmas unless you are traveling ON the holiday, which I’ve seen can have favorable pricing. Avoid other popular times, like Spring Break. Finding out what’s going on at your destination is also good practice. Fabulous weather, festivals, and local-specific holidays can drive up rates. Googling “best times to travel to [destination]” is a great way to get a sense of peak and off-peak times at a particular location.
Warning: The lowest rates often come with extra fees
Prepaid rates on flights, hotels, and rental cars are often the lowest, but they almost always have a strict cancellation policy that includes penalties for cancellations. If there’s any chance that your plans could change, look for more flexible offers.
Also, when booking “bargain” flights, make sure you understand what that flight includes and doesn’t include. For example, the cheapest flight probably won’t include a meal and will only include an under-seat bag, so you’ll end up buying food at the airport or on board and paying for a bag in the overhead. A more moderately-priced flight might come with a meal, a free overhead bag, and one free checked bag. Do the math before clicking “buy.”
And consider travel insurance (your credit card might also offer travel protection – check before booking!)
Vacation rental properties vs. hotels
If you book a house or apartment via Airbnb, VRBO, or another vacation rental service, you’ll often get more space at a better price. Not to mention, staying in a home or apartment space can give you more of an authentic, local experience. Houses and apartments are also more likely to have a kitchen set up so you eat some meals in, rather than eating out every meal.
If you plan to rent a car, inquire about parking. The property may offer free parking, which is a big bonus.
If you prefer a hotel, compare the price for booking directly vs. through a travel aggregator site, like Expedia or TripAdvisor. If you find a lower price with an aggregator, some hotels will match that price, and then you can earn points through the hotel’s loyalty program. When you’re booking, look at the amenities. Factor all fees for parking, meals, or high-speed internet, into the overall price.
And if you don’t mind organizing a trip with your family and friends, you can save money on accommodations, experiences, and more by taking advantage of group rates. Many hotels will offer discounted rates on bookings for large parties, and it can make sense to rent a large vacation property to house everyone, as opposed to renting separate hotel rooms. Tour companies are also often willing to lower their rates for larger groups.
Loyalty pays off
Join any free loyalty programs, whether for a travel site, a hotel, an airline, or a rental car company. Most include free WIFI, free upgrades, the ability to earn points towards additional benefits, and more. Redeem your points wisely to score better deals on the amenities that are important to you.
If you travel frequently, consider a get a hotel-branded or airline-branded credit card. Many offer hefty bonus points and perks, like free room upgrades and amenities! Remember that these cards also often have high interest rates, so only sign up and use the cards if you intend to pay them off in full each month.
If you’d prefer to use your regular credit card, there may be travel benefits, like exclusive hotel discounts, no foreign transaction fees, or free travel protection.
And don’t forget your memberships! Many hotels offer AAA or AARP discounts.
Bring your own food and water
Buying meals and bottled water at the airport can add up. Airport food is usually overpriced for what you get. Make some sandwiches, grab snacks from your pantry, and throw an empty travel water bottle in your bag that you can fill once you’ve reached security. The bottle will come in handy at your destination, too! I also like to have healthy protein bars on hand in case I miss breakfast at the hotel or if the hotel breakfast is pricey.
Money matters
Instead of stocking up on foreign currency in advance, wait until you arrive at your destination and can withdraw from the ATM (rather than one of those more expensive cash booths). Exchange rates are higher when pre-purchasing. I suggest withdrawing local currency only once or twice and storing the extra cash in your room safe to use during your trip to avoid additional fees. Another option is using a credit card with no foreign transaction fees (like most Amex cards). Also, check your credit cards before you leave to see if you have one that doesn’t charge foreign exchange fees. Many cards these days, including some Amex, Chase, and Capital One cards don’t charge fees, so you can use them on your trip fee-free. However, it’s worth researching your destination to see if credit cards are widely accepted. Which cards are accepted is important as well. We found in Berlin last year that many businesses and restaurants only accepted cash, and the ones that accepted cards didn’t accept Amex. Thankfully, I had my Amazon Prime Visa with me, which had no foreign transaction fees.
Be savvy about conversion rates. When using a credit card at an establishment that allows you to pay in your home or local currency, you should usually opt for local as many stores/restaurants charge an exchange fee.
If you are flexible about your destination, focus on locations where your money goes the farthest. Mexico, India, Chile, Vietnam, Costa Rica, Croatia, and Argentina are just a few options where the exchange rate heavily favors the US Dollar. The exchange rate in Euros is close to 1:1 right now, so European destinations are also a good option!
How to save at your destination
Concierge and hotel staff will usually recommend safe—often pricey—tourist destinations. Brush up on your language skills and ask locals where to go and what to eat to have an authentic experience and save money.
Also, avoid eating out for every meal. If where you’re staying has a kitchenette, grab essentials from a local grocery store and try to have one meal per day at the hotel/Airbnb. The same goes for booze. Keep a couple of bottles of wine or a local spirit where you’re staying, and skip the pricey hotel bar.
Transportation at your destination
If your destination has a decent public transportation system, use it! Rental cars can be expensive, and you may also have to pay for parking. Public transportation is also significantly cheaper than taxis or Ubers.
Public transportation is also a great way to get a real feel for a place but do your research beforehand to learn how the system works at your destination so you’re ready to catch a ride with minimal confusion.
Another consideration is to buy tickets for a tour bus. Tour bus routes usually include most important sights, and you can hop on and off at your leisure. My family and I aren’t much for tours, but having a tour bus pass on our trip to Barcelona allowed us to see all the sites easily (and we learned interesting tidbits along the way)! We also saw places that appealed to us and were able to return and spend more time there later.
If you’d prefer to rent a car, compare car fees at the airport with off-site. To avoid airport surcharges, it may be cheaper to take a shuttle bus or taxi.
Use your AAA, Costco, AARP, or other memberships for discounts.
Be cautious about bundle deals that include a rental with your flight & hotel. Before assuming you get the best deal, break down the cost difference between individual bookings and a bundle. While bundles are often cheaper than a la carte, they sometimes come with things you don’t want, costing you more.
If you’re traveling with small children, bring your own car seat. Most rental companies charge $10-$15 per day to include a car seat.
Research parking in advance. It can be shocking to learn how much your hotel charges for parking each day. And street parking can be tricky if you don’t understand the language well. We’ve had luck with paid parking lots or garages near our hotel.
Set up your cell phone
Connectivity at your destination is key, so before you go, ask your carrier for the best deal for international text, talk, and data usage. And ask for clear instructions on how to activate your plan.
If you don’t inquire ahead, you will likely have a huge bill waiting for you after your trip. AT&T offers an International Day Pass for $10/day, and Verizon has a similar TravelPass for $10/day.
Getting a foreign SIM card is also an option if your carrier doesn’t offer an affordable international option. You can find those at tourist shops at airports and train stations, shops with tech accessories, and even convenience stores.
